PROPERTY:
Kingswell Dr, Woodbridge, VA 22193
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $230,000. The borrower is putting up about $60K of their own cash plus fronting the construction costs. The property only needs about $10K in work to spruce up.
PROPOSED TERMS:
Loan Type: | Purchase |
Loan Amount: | $200,000 1st Mortgage |
Value of Subject Property: | $315,000 |
Loan to Value: | 64% |
Term requested: | 9 Month Balloon |
Investor return: | 12% |
Exit Strategy: | Resell property |
Credit Score | 591 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of Prince William County Virginia. The borrower will be contributing about $60K+ into this deal plus fronting construction money.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.